California-based EV maker Fisker Inc (NYSE: FSR) reflected on their price adjustments in the recent past during the company's third-quarter earnings call on Monday.
What Happened: "We also have changed our price strategy both in Europe, U.S and Canada, and it's working," company CEO Henrik Fisker said. He added that the company is now witnessing consumer interest move towards the Extreme from the Ultra.
Last month, Fisker announced that it would cut prices on the high-end trim of its Ocean SUV in the U.S. while simultaneously raising prices on its Ocean Ultra and Sport trims. The Ocean Extreme trim was priced $7,500 lower at $61,499. Simultaneously, the price of the Ultra was raised by $3,000 to $52,999 and the starting price of the Sport trim by $1,500 to $38,999.
"...even though we don't get the IRA tax discount for our customers, we have a very competitive pricing in the U.S. and we are seeing ongoing strong demand for our unique product," the CEO said.
Meanwhile, Fisker products are more competitively priced in Europe than in the U.S., Fisker said, attributing it to lower logistics costs given that the company's factory is in Europe.
The price adjustments hint towards a shift in industry and company dynamics. During the first-quarter earnings call in May, the company said it is not really worried about pricing.
Why It Matters: For the third quarter, Fisker reported a third-quarter revenue of $71.8 million, up from $825,000 in the second quarter. The company reported a quarterly loss of 27 cents per share, which improved from a loss of 45 cents per share in the prior year's quarter.
Fisker now expects production of 13,000 to 17,000 electric vehicles in 2023, down from its previous projection of 20,000 to 23,000 vehicles.